U.S. Considers Using Frozen Iranian Assets for Gulf Allies’ Recovery
The Trump administration is looking into the possibility of using frozen Iranian assets to assist Gulf allies that have been affected by missile and drone attacks from Iran. This review is happening as Iranian officials demand the release of billions from the same funds, tying it to broader negotiations with the United States.
Reports suggest that Treasury Secretary Scott Bessent has been pushing for an assessment of the damages incurred by U.S. allies in the Gulf since the conflict began. He is examining whether Iranian assets controlled by the U.S. could be utilized for reconstruction efforts. It’s uncertain how far this evaluation will go, but it may include both damages from future incidents and those related to previous attacks.
According to sources, the Treasury Department intends to leverage all possible means to make these Iranian assets available for rebuilding the affected Gulf states. Furthermore, Bessent is keen on obtaining a comprehensive understanding from Gulf allies about the extent of their damages since the conflict started.
This proposal surfaced shortly after Mohsen Rezaei, a top military adviser to Iran’s Supreme Leader, indicated that negotiations with Washington are at a standstill. He emphasized that President Trump needs to decide on releasing around $24 billion in frozen Iranian assets. Rezaei has specified that Iran is seeking an immediate release of $12 billion following the signing of an interim agreement, with another $12 billion to follow later, framing this request as a test of the U.S.’s commitment to progress in negotiations.
Rezaei asserted that if a deal between Iran and the U.S. is to be established, the release of this $24 billion would signify a building of trust. He underscored that this money is rightfully Iran’s.
In a somewhat ominous note, Rezaei also warned that further hostilities could erupt if the situation escalates, signaling potential missile strikes on U.S. positions in the region. However, he believes that an outright war remains unlikely.
While the two nations are still at odds concerning the release of these assets, it appears the Trump administration is at least planning for the possibility of negotiations advancing into more complex stages.
Recent reports revealed that special envoys have covertly met with nuclear experts to lay groundwork for a potential future deal with Iran. A group of approximately 100 experts is being assembled to work on the technical details of any forthcoming agreement, which might involve managing Iran’s uranium stockpile and establishing verification protocols.
A U.S. official noted that although the recent meetings do not guarantee a deal will materialize, they do indicate serious negotiation efforts are underway.
The negotiations revolve around multiple unresolved issues, including when sanctions could be lifted, the schedule for releasing Iranian assets, and the timeline for handling Iran’s enriched uranium stockpile. Meanwhile, military tensions in the region escalated over the weekend, despite ongoing diplomatic efforts. U.S. Central Command reported shooting down two Iranian drones that posed a threat to maritime traffic.
Afterward, U.S. forces targeted Iranian radar facilities as a defensive move. Following these defensive actions, Iran reportedly launched ballistic missiles toward Kuwait and Bahrain, with several intercepted by U.S. defenses.
U.S. Central Command denied Iranian claims that their attacks caused damage to American military bases in Bahrain, insisting that no personnel were harmed.
This military posturing continues as Iran maintains that control over the Strait of Hormuz is crucial for its negotiations with the U.S., likening its importance to that of nuclear weapons.
In the backdrop of these tensions, Pakistan’s Interior Minister recently visited Tehran, carrying a message from their Prime Minister. Pakistan has taken on a mediating role throughout the ongoing negotiations. The Minister expressed hopes for peaceful diplomatic developments.
Simultaneously, President Trump expressed a cautious optimism about reaching a deal while maintaining that Iran must not be allowed nuclear capabilities. In a recent interview, he noted that Iran’s military capabilities have notably diminished during the conflict, estimating they have only a fraction of their missile arsenal left.
Trump reiterated that the resolution of this conflict would align with U.S. interests, suggesting that it’s either going to be achieved through a formal agreement or through more difficult means.
